Page:The Czechoslovak Review, vol4, 1920.pdf/263

Kuneš Sontag, the Minister of Finance, expects a budgetary surplus in 1923.

From a credit man’s standpoint Czechoslovakia is an excellent prospect.

Yet it is noteworthy that Czechoslovakia in face and spite of an excellent showing finds herself unable to secure American raw materials on sufficient credits—terms of credit which will allow delivery, conversion and marketing of the goods purchased.

What is the cause? Wherein lies the remedy? are the questions to be answered.

American merchants are willing, in fact anxious, to do business with Czechoslovakia. They seek permanent markets for surplus commodities. They can sell Czechoslovakia provided they are willing to tie up their capital for a period ranging from six to nine months. The merchants are satisfied with the credit standing of the prospect but they are not in a position to carry a purchaser on their books for that length of time. Czechoslovak merchants will liquidate their obligations when due—that is characteristic. The stumbling block to increased business with Czechoslovakia is, that American banks will not discount commercial paper the seller must take in payment. That is the problem.

Under the Federal Reserve Banking practice no member bank can discount commercial paper maturing in more than ninety days after discount day. If such accommodation is extended by the seller to the buyer, that is a credit of over three months, the American merchant must carry that paper until within ninety days of due day, or, until maturity. The seller is restricted, by this practice, to extend only such credits as will meet the requirements of the banks. Therein lies the crux of the situation.

Three months, on the average, are necessary for a shipment to reach its destination in Czechoslovakia. Up to three months, depending on the goods, are required for conversion. Additional three months are taken up with marketing the finished articles. Therefore, if Czechoslovakia is to consume American raw materials, under the conditions existing at present, it must be accorded a nine months credit, or, three times the usual discount term extended by the American banks.

If the United States are to cater to world markets, its merchants must extend credit, in whatever form, to the necessities of the case. Its banks, likewise, must be in a position to absorb long term commercial paper giveh in payment. If the United States seek foreign markets, its banking system must be conformed to world business practices.

In the final analysis the lack of sufficient credit accomodations is the barrier to greater, and permanent, commerce between the United States and Czechoslovakia. England and Continental Europe are laying foundations for lasting business relations. American exports to all European countries are constantly decreasing. The hands of the American merchant are tied. Until the United States wak to the necessity of the hour, granting on long term commercial credits, not only will Czechoslovakia be closed to them, but practically all Europe.

Daily, evening, noon-day and Sunday courses in higher instruction are provided in Czechoslovakia for all those desiring to complete their interrupted or unfinished education, or, for those wishing to pursue higher studies. Illiteracy is practically unknown, except in that district formerly dominated by the Magyars.

Art crafts, trades, domestic sciences and continuation schools are conveniently located throughout the country. Capable instructors are provided. This well developed system is the secret of Czechoslovakia’s supremacy in the industrial field. The constant evolution of the scientific processes of production, and incidently the perfection of the article, has been going on for years.

The number of individuals taking advantage of the opportunity to continue or complete their studies is large—127,759 students being enrolled in the various institutions. No consideration is given to the attendance in elementary schools, the gymnasia or the universities. The appended statistics give a slight idea of the popularity of part time instruction and its phenomenal growth in the current year.